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POSTED BY ON November 17, 2012 11:47 pm COMMENTS (2)
I have applied for a Consumer durable loan with Bajaj finserv which was declined due to low cibil score. I hv already taken a auto loan of Rs.65000/-. Due to ignorance of cibil conditions, my five cheques are bouncing but i deposit all the bounces in cash payments regularly after 10 to 15 days delay than the actual payment date with penal charges of Rs. 300/- each installment. Now only three instalment of above loan are pending to be made. I am planning to deposit the remaining three intalment in lumpsum with a wweks of tme and closed the said loan and get a NOC from the bank and produced it to the Bajaj finserv. Please tell me that the above action is right and it will help me to improve my cibil score for availing the proposed loan. Thanks
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Dear Mr. Hanspal,
The cheque bounce for whatever reasons has resulted in late payments reflecting in your credit report. Although the late payments are only of 10 – 15 days, it does affect your score and would be reflected in your credit report. Your decision to pay the remaining instalments in lump sum will show your current balance as zero but would not remove the late payments from your report.
It is difficult to comment whether approaching Bajaj Finserv with the NOC would guarantee the approval of your loan application as improvement in your CIBIL score would not be immediate. Also, there may be other factors in your credit report that could be affecting your score.
Regards,
Credexpert
Hanspal – Sorry to hear that you learnt the lesson in a painful way. Please remember the following.
1) there are 3 credit bureaus and 3 credit scores in India (from CIBIL, Experian and Equifax).
2) To get better deals from banks, you should score well in all these 3. Because lenders have started to use scores from Experian and Equifax in addition to the dominant CIBIL.
3) The best way to improve your score is to do the following.
a) Pay all your loans in time
b) have some secured credit (like home loan or auto loans)
c) low utilization on credit cards
d) low debt
e) Don’t seek credits unnecessarily. try to remain with in Debt-to-Income ratio of 18.
C G